Robnett Corporation Manufactures One Product

question 459

Multiple Choice

Robnett Corporation manufactures one product. It does not maintain any beginning or ending Work in Process inventories. The company uses a standard cost system in which inventories are recorded at their standard costs. There is no variable manufacturing overhead. The standard cost card for the company's only product is as follows: During the year, the company completed the following transactions:a. Purchased 106,900 liters of raw material at a price of $6.80 per liter.b. Used 93,760 liters of the raw material to produce 24,700 units of work in process.Assume that all transactions are recorded on the below worksheet, which is similar to the worksheet shown in your text except that it has been divided into two parts so that it fits on one page. The beginning balances in each of the accounts have been given. PP&E (net) stands for Property, Plant, and Equipment net of depreciation.
When recording the raw materials used in production in transaction (b) above, the Raw Materials inventory account will increase (decrease) by:

• A) $609,440
• B) $637,568
• C) ($637,568)
• D) ($609,440)

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Definitions:

Multiple Times

Refers to conducting or repeating a process or measurement on several occasions to ensure accuracy or reliability.

T Value

A value derived from a T-test, used to determine the significance of differences between two sample means.

Independent Samples

Two or more groups of observations that are collected from separate populations and are not related or connected in any way.

Significance Level

The probability of rejecting the null hypothesis in a statistical test when it is actually true; a measure of the risk of making a Type I error.